rkamm@taxestech
Level 2
01-05-2021
08:37 PM
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An S-Corp Officer is both employee and 100% shareholder. With this logic, an S-Corp Officer's wife who indirectly owns 100% of shares also work for the Company, participating decision making with the husband, I wonder if it makes sense to report her wages as part of the "Officer Comp" on Line 7 of Form1120S? (Assume Married Filed Jointly)
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sjrcpa
Level 15
01-05-2021
08:57 PM
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While there is imputed stock ownership, there is not imputed officership.
The more I know the more I don’t know.
rkamm@taxestech
Level 2
01-07-2021
09:57 AM
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Thank you for responding. I also consulted my tax professor and he said the officer’s legality is actually not a tax issue, but is governed by the state law. As long as the wife is a legal officer under the state jurisdictions where the S-Corp is incorporated, she can report her salary as officer comp.
sjrcpa
Level 15
01-07-2021
10:21 AM
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Correct. In your OP you never said she was an officer.
The more I know the more I don’t know.
